Last week we talked about how important it is to conduct a weekly financial analysis of your personal finances based off your personal financial statement. That way you are able to really asses where you are and where you want to be in regards to your personal financial freedom -- as well as any areas you may need to clean up in order to get you there.

We also talked about how your personal financial statement acts in terms like a mirror, and reflects the kind of person you are on the inside. Hence, the scripture, "Where your treasure is, there your heart will be also." Definitely something we should all keep in mind...

This week, I want to take this idea of controlling your personal finances one-step further. We've already talked about how income is senior to saving and investing, and if we understand that idea to be true, then how wouldn't you like to know how to make more than what you are able to spend?

The Financially Out-of-Control Thought Process

You see, we've all been told that we should "live within our means," or not to spend more than what we bring in. But here's the thing...

Truth be told: This type of financial principle and financial focus is actually detrimental to your ability to produce wealth. You see, when thinking in these terms you are already thinking in terms of contracting rather than in expansion or growth; and last week we learned that we always get what we focus on.

Instead of thinking about how to not spend more than what you bring in, and "live within your means," what you should be thinking is how to make your income (inflow) so ginormous that your outflow (spending) will never be able to catch up.

"Most people spend most of their time looking at what they spend rather than what they make. Your way out is through income, not reducing your expenses." -Grant Cardone

Now, don't misunderstand me -- or better yet, misquote me. Certainly, I am not telling you to go and spend more than what you make. What I am advising is that you learn how to increase your income to the point that you will never be able to out spend what you got coming in.

Keep in mind, we are talking about achieving financial freedom through CONTROL here. With that said, certainly there are some people out there who will spend as much as they make -- no matter how much they make. These types of people are "out-of-control" with their finances.

Grant Cardone's 95/5 Rule

Keeping in mind the idea of how we always get what we focus on, the rule you should always follow when it comes to controlling your personal finances is what Grant Cardone calls the 95/5 Rule.

The 95/5 Rule is:Spend 95% of your time and energy on income and 5% of your time and resources on your expenses.

Take out your personal financial statement - a statement of your income and expenses, which you should already be keeping a record of if you read last week's article. What you will find in most cases is that the lines for your income will be few and minuet, but the lines for your expenses will be legion.

That's the power of income. You see, it only takes a few lines of income space to exceed the many lines of expense space. As we have already stated, the 95/5 rule suggest that you spend most of your time and mental energy on your income capabilities rather than on your expenses.

You see, most people have this all in reverse -- they spend all of their time on expenses and little to no time on income or on finding ways to increase their income -- which is why the majority of our country is broke or just barely scraping by.

Take a minute and think about how much time you spend on the income side of your financial statement. If you are like most average American families, you're spending the majority of your time on the expense side rather than on the income side.

Look, as I've mentioned before, it's not all your fault. This is how you've been taught to look at your personal finances. But from here on out, it will be your fault if you continue to go down this road.

ATTENTION! ATTENTION! ATTENTION! -- DISCLAIMER:
There is some language in this video that all of us here at William Ballard Enterprise do not fully support, endorse, or encourage. From the outset, I want to express my deepest and sincerest apologies before you ever push play on this video. The only reason I am showing you this is because I want you to listen to the financial principles, not the potty mouth that Grant sometimes gets carried away with.

ATTENTION! ATTENTION! ATTENTION! -- DISCLAIMER:
There is some language in this video that all of us here at William Ballard Enterprise do not fully support, endorse, or encourage. From the outset, I want to express my deepest and sincerest apologies before you ever push play on this video. The only reason I am showing you this is because I want you to listen to the financial principles, not the potty mouth that Grant sometimes gets carried away with.

In addition to conducting weekly financial analysis meetings, I suggest that, in your meetings, you develop the mental habit of spending most of your time on income (the solution to your financial problems and worries) rather than on expenses.

As Grant Cardone advises us in his Playbook to Millions (AFF) program, our target (goal or objective) should be to create enough income in the future that we are then able to save 40% of our gross income.

What this will do is force you to think in terms of what can you do to increase your income rather than what can you give up in order to reduce your spending.

Look, now-in days, most people are saving no more than 5% of their income -- and that's if they are able to do so without permanently affecting their monthly living situation -- which will never be enough to create wealth and financial freedom.

In fact, believe it or not, the average American only has $3,000 in their savings account.

"The supposed finance experts say you should have 3 months of savings because they don't believe in your ability to produce income. Get on the offense (increase income) and stop spending all your time on defense (saving money)." -Grant Cardone

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How to Control The Credit Card Companies

Look, I've heard all the horror stories about credit cards -- just like you. I was raised to believe that credit cards were evil and that all debt is/was bad debt. The reason for this is because most live with an out-of-control mindset towards their finances, and frankly put, live in fear when it comes to their financial well-being.

You see, the reason so many people fear credit cards, is because they fear such terms as late fees, penalties, high interest rates, and paying down principles. However, the financial educated/informed person knows how to use/control the credit card companies rather than credit card companies using them.

You see, what you have to understand is this: ALL wealthy people have credit cards, so it is not the credit card that's the problem. The difference between the wealthy and the poor is that one knows how to use credit cards rather than them being used by them. It is all about taking back CONTROL.

Look, on one side, there are those types of people that completely fear credit cards and want nothing to do with them. But then on other side, there are those that live by them.

You've heard of people "living on credit," right? The reason for this is because most people have given up on their ability to increase their income, and therefore have given up the responsibility for their financial actions; and instead, have given over that control to the credit card companies.

I suggest you rethink this by deciding right now that you are taking back CONTROL of your personal finances and your credit card usage by only using them as a means to record all your income generating purchases, so that they become a statement of your financial activity and behavior.

Look, like you, I was raised and taught to look at money and credit cards through the eyes of an out-of-control financial human being. It wasn't until I decided to take back control of my financial life, and become financially educated/informed that I now use the credit card companies, they don't use me.

In other words, I haven't paid interest rates or late fees on my credit cards since 2009, when I was financially immature and irresponsible. In fact, I pay off my full balance rather than the minimum due every month, and use my credit card statements as accounting assets.

Most people will tell you that you should keep your receipts, but I find this unnecessary because your monthly credit card statement tracks all of this information for you. As you can probably tell, I am a huge advocate for working smarter, not harder.

And another important benefit to having credit cards is that you can stack-up points that you can use on hotels, airline tickets (frequent flyer miles), car rentals, etc. of which, you wouldn't be able to take advantage of if you were only using cash.

Plus, speaking of hotels, you should most definitely enroll in hotel rewards programs. The reason being is the more nights you stay in certain hotels, the more reward points you stack-up which could lead to free nights or even fully-paid cruises or vacation trips. Just something to take into consideration...

Good Debt vs. Bad Debt

Now, speaking of credit cards, debt is defined as something borrowed and is given a due date to be returned. If you are like me, you were probably raised to believe that all debt is bad -- may I venture to say, even evil... In fact, the scripture tells us, "The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs 22:7).

However, what you need to understand is this: Not all debt is created equal. You see, there is some debt that is bad and there is some debt that is good. In other words, there are times when I want to be the borrower of something, and there are certainly times when I want to act in the role of a lender.

Look, there's times when you should use debt and there's times when you shouldn't. With that said, the only time you should ever use debt is when others pay for it and/or when it helps to grow your business or enterprise.

Look, no matter what you've been told about debt, there is absolutely no way to become financially free without it. Every major billion dollar corporation leverages the power of debt in order to help themselves grow and expand.

The difference between them -- and you and I -- is that we've been taught wrong about how to leverage debt. You see, the average American uses debt, not as "working capital" to build their business or enterprise... but, rather as a means to help increase their spending habit.

"Debt that is used to increase my ability to go into the marketplace and produce more income, not buy more things, is what is called good debt."
-- Grant Cardone

You see, the difference is, debt that can increase your income, or get you known in the marketplace is what is known as "good debt"; the debt that is used to increase your spending habit such as eating out or for entertainment purposes, this is what is known as "bad debt."

As I said before, not all debt is created equal. I use debt to build my income or to increase awareness of my business in the marketplace. In other words, debt is me going to the bank to borrow money in order to build and grow my business and enterprise.

Just look at Apple, they have over $270 billion in cash flow, and even they leverage the power of good debt for working capital.

Increase Your Income In Order to Stay Broke

As I've mentioned before, your goal should be to save 40% of what you make. I know that this is a highly aggressive goal, but it is one that history has proven to show how the wealthy operate.

I'll be honest with you, I know exactly what you may be thinking... You are probably saying to yourself, "But William, I live paycheck-to-paycheck. There is no way I can save 40% of my monthly income."

Wait for it...

I agree with 100%.

And if you stick with me, I am going to show you exactly how to increase your income by leveraging the power of "good debt."

Just check out this chart below that shows where the top 1% save almost 40% of their income over the last 100 years, allowing them to make BIG investments.

Okay... Okay...

How can you save 40% of your monthly (let alone annual) income if you are only living paycheck-to-paycheck?

You see, I have figured out the secret to controlling the credit card companies and the lender/debt institutions. Most will tell you that these lending institutions are all scams and that credit cards are evil, but the only ones telling you that are the ones that only know how to be used by these institutions, and have no idea how to control them.

Look, if you want to learn how to control the credit card companies and lending institutions here is what you need to KNOW in order to do so:

A JOB - First and foremost, you NEED a job! That means for those of you who are living off of unemployment -- YOUR WRONG! -- as my Marine Corps drill instructors used to tell me. Which means, starting off, you are going to need at least ONE source of income to build your financial empire upon -- something that will teach you discipline and help you develop a work ethic.

Become Financially Literate - Other than getting a job, this point is actually tied with number one because you absolutely MUST become financially literate before you can move on to the next steps. If you recall back to the video with Grant and Elena Cardone (above), your money problem steams from your lack of financial literacy and/or financial misinformation. You see, why do you think the majority of people and average American homes do not want to discuss finances? In fact, it is looked at as being taboo in some social settings. This lack of talking about it is a serious problem in our society today. And the truth is: Mastering this financial game is NOT as complicated as most make it out to be. Step two to increasing your income and building wealth is becoming financially literate.

Get A Credit Card or Some Line of Credit -- I know that this may go against everything that you have been taught, but the truth is: This is the only way you are ever going to learn how to leverage the power of "good debt." As we have already stated above, good debt is leveraging another person's (or institution's) finances to help increase your income. The problem with most average Americans is they take out a line of credit or loan in order to assist them in their spending habit. They go on shopping sprees and other nonsensical type things. That is NOT what credit/debt is meant for! Look, if you don't get anything out of this whole article, get this: Credit cards and loans/debts are ONLY MEANT TO BE USED TO INCREASE YOUR INCOME, not to provide you with more funds to add to your spending habit. In other words, your spending money should come out of your income, not out of your lines of credit -- let this point really sink in!

Start Your Own Business! -- Look, I don't care if you get into network marketing or actually launch your own business idea, the key here is you NEED to become business minded. It was Jim Rohn who said, "Work full-time on your job and part-time on your fortune." I don't think I can say it any better than that. You see, while you are working on number one (your full-time job) during the week, you should be working on number four (your own empire) during the weekend. Look, this is how every millionaire and billionaire got started. They became obsessed with learning the money game (becoming financially literate) and totally committed to mastering the art of selling (increasing their income) and building their empire. Frankly, THERE IS NO OTHER WAY!

In fact, when you are first starting out, you should look at your line of credit as your first incremental increase in your income, which means you practice what Grant Cardone refers to in his Millionaire Booklet (AFF) as "Staying Broke."

You see, Grant Cardone would tell you, "Your problem is not a spending problem, you problem is an income problem."

Look, as you learn to successfully manage someone else's money wisely (credit cards and/or loans), being able to manage your own income surges will come that much more easily.

With that said, when you begin to see an increase in your income through incremental growth-spurts, DO NOT start changing your standard of living or lifestyle! In fact, I encourage you to continue living within the same financial lifestyle that you've been living (before you got a line of credit or began increasing your income through small increments), and take your new 40% increased income spurts (your line of credit, at least for now), and put that money away in a scared account that you can't touch (or be tempted to touch), thus leaving you "broke" until you are prepared to invest it.

Remember: Never just have money sitting around (whether that is in the form of cash in a shoe box at home, or in your personal checking account) because money gets bored, and when it does, it gets wasted.

Look, "Staying Broke" doesn't mean you are poor, it means you have made a commitment to putting new earned monies aside so ONE day you can afford to make BIG moves.

Now, this kind of thing takes serious discipline, self-control, and an unwavering commitment to your financial freedom. That is the whole reason why I am doing this series and trying to teach how to develop this CONTROL FREAK mindset that we've been talking about.

"I purposely make myself 'broke' two or three times a year never allowing money to just sit around, and I never increase my standard of living until I have new income from other streams I can depend on."
- Grant Cardone

Oh, NO... There's a World Crisis ... a Shortage of Money...

Speaking of mindsets, if you were brought up poor or middle class -- like I was -- you are left with the beliefs and actions of the poor and middle class. This is where you your shortage of money mindset came from.

It has been said, "If you can see it in your mind, you can hold it in your hand." In other words, if you believe there is a shortage of money on this earth, there is. However, the opposite is also true.

You see, in reality, there is more money than there are trees. In fact, you can print money faster than you can plant or grow a tree.

Look, money is everywhere, and if you are experiencing a shortage of money in your life, it started in your mind. In short, there is no shortage of money on this planet. If you have a shortage of money, it is a problem with you and your thinking -- not with money.

I suggest you take some time this week and go outside and look around for signs of wealth, prosperity, and abundance such as cars, buildings, stores, retail outlet malls, and on and on. There is NO shortage of money, only a shortage of people that have broken free from the mental block of abundance.

Look, if you were like me and brought up by people who were poor or middle class, you were brought up by people who believed their was a shortage of money. You've heard it, I'm sure -- "Turn the lights off if you're not going to be in the room... Eat all your food... A penny saved is a penny earned..." and all the other money crisis mentality falsehoods that you can recall back to.

Look, a penny earned is a penny -- nothing more! I encourage you to begin taking CONTROL over this money shortage mentality that you've been conditioned to have by paying attention to how much money there is around you.

If you happen to live in an area where you are limited in your ability to see wealth, then go where you can see abundance easily and admire it.

Once again, you get what you focus on. And if all you've been focusing on is that there is a shortage of money or that there is never enough, or that you can never get a break...

Then it is no wonder that you are experiencing everything your mind has imagined and created up for you.

Why Everyone's Definition of "Can't Afford" is Different

Have you ever heard the old saying that if you need to know the price, you can't afford it. That is not exactly true. However, the bigger issue is when you are constantly looking at prices, complaining about prices, and worried about how much something cost.

This might be hard to read or accept, but the truth is: If you are constantly complaining or worried about how much something cost, then that feeling is a clear sign of how you are not producing at your full-potential.

Ask yourself this:Why are you so concerned about how much something cost?

"Price is a way in which people deceive themselves from seeing value. People buy things they don't need because the price is so 'good' and yet they deprive themselves of the things they do need because the price is too high."
-- Grant Cardone

Look, price is not your problem. You see, the price is not what you are buying, what you are actually purchasing is the value of a product or service.

In fact, let me ask you this: Do you think that the super wealthy worry about the price of a steak or a cup of coffee? Wealthy people don't worry themselves over price because they make more than they can spend. They aren't worried over a $30 book or $1,000 program, their attention is focused on abundance and expansion (growth).

Even in the prayer of Jabez, he asked that the Lord would widen his territory. What makes him better than you? Look, I don't know what you believe when it comes to your spiritual well-being, or what your personal lifestyle may be like.

In fact, you may feel like, because of the life you've lived in the past (or are currently living), that God is displeased with you and would never be able to reward you for your evil ways.

Look, if that is how you feel then I am glad you are here because that means I have been brought here in front of you, to tell you: God already rewarded you and showed His sign of love to you by sending is only begotten Son to take your place for all the wrong you've done.

In other words, there is absolutely no reason why Jabez should get a "one-up" on you. You are just as important and cherished by God as he (Jabez) was.

No, I am not condoning what you may have done in the past, but what I am saying is that God's grace and mercy is more infinitely abundant than a lifetime of wrongs done by 8 billion souls on this planet.

Look, as we've stated, price is not your problem, but rather your viewpoint of value is what we need to touch on. You see, there is a thing called intrinsic value that is so expensive that there is no amount of money that can come close to it. And that was the "value" of the price paid on the cross.

In fact, God sees you as being worth more than all the money there is on planet earth, and again, there is no such thing as a shortage of money on this planet.

Look, the average American makes $43,000 a year, where the average cost of living is over $43,000 a year. And believe it or not, 76% of all Americans live paycheck-to-paycheck -- in the wealthiest country in the world. But truth be told, it is no different for a person in America than it is for the guy living in India working for $2 a day.

In short, as we've mentioned before, out-of-control people always focus on the wrong kinds of things. All this attention to what things cost is nothing more than a mental reminder of how much you are not producing at your highest potential.

Instead, I suggest you have a paradigm shift and start focusing your attention on production rather than on how much something cost. Looking at prices is an indication that you have contracted your mental financial perspective.

Final Thoughts

In conclusion, by now you should be able to see how important it is to take back CONTROL over your personal finances.

Based on everything that we've covered so far, next week, we are going to go over the top 8 money mistakes that most Americans are committing on day-to-day basis, and how to finally be able to nip these mistakes in the bud.

To that end, you will definitely want to stick around for next week's article.Subscribe to our newsletter below so that you don't miss out--trust me, you'll be glad you did!

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Until next week, make your way down to the comment section below and share your thoughts. Then I want you to do me a BIG favor and share this article with as many people as you can --let's make this GO VIRAL!

William Ballardis an entrepreneur, international best-selling author, speaker, thought leader, and direct-response marketing expert. He is a highly respected and sought after master copywriter whose passion is to help local churches (ministries) and entrepreneurs get more for their hard work regardless of economic climate. His books, audio packages, membership programs, and seminars provide readers, just like you, with the practical tools necessary to finally answer the call to ministry or to launch their very own businesses and help propel them towards their path to true financial freedom.

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